A family in Bristow, Virginia recently received notice from Chase wherein the bank is proposing to reverse the foreclosure on their home and offering to have their mortgage modified. The news is one of very few good ones in the state that has also suffered from huge number of bank owned home foreclosures.
The state has seen thousands of bank foreclosures, including JP Morgan Chase foreclosures, but has rarely had a development such as the Chase offer to the Wales family. Kathy and Mike Wales have a ten year old son who has been suffering from a terminal condition, which is the main reason why the couple was unable to pay their mortgage in time.
The Wales family, just like other state residents facing possible bank foreclosures, including Chase, Citibank foreclosures and other homeownership-related troubles, has been trying to get their mortgage modified. The family was trying to get the modification under the federal government's relief program.
According to a Fannie Mae spokesperson, Chase, the bank administering the mortgage for Fannie, misplaced the assistance application. A few days before the Wales' townhome is to become one of the area's foreclosed homes for sale, the bank informed the Wales family that their Making Home Affordable Program application has been approved.
However, the loan modification documents sent to owners of bank owned home foreclosures who have been approved under the federal program did not arrive on the Wales' doorsteps and ownership of their property was reverted back to the mortgage giant Fannie Mae. According to reports, it was highly possible that the Wales' application would have been rejected under normal circumstances.
But Chase reportedly failed to follow protocols set by Fannie Mae, one of which is offering loan modification options prior to considering foreclosure or short sale. The story of the Wales and their son was featured in an article that appeared in the "Washington Post," which led to Fannie and Chase digging deeper into the case and concluding that there was an error in processing the application.
According to the Wales, they will wait for their lawyer's opinion before answering the proposal from Chase. Despite the delay, the story of the Wales is considered a bright spot in an otherwise bleak market where bank owned home foreclosures number by the thousands and more and more homeowners are losing their properties to foreclosures.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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